BAHASA INGGRIS

Supply Chain Management

Disusun oleh :
1. Celine Jusup (545140040)
2. Melly (545140041)
3. Oktavia Lawrensa (545140043)
4. Christia (545140045)
5. Maria Loura C (545140077)

PROGRAM STUDI TEKNIK INDUSTRI

FAKULTAS TEKNIK
UNIVERSITAS TARUMANAGARA
JAKARTA
2016
 CHAPTER 1
DESCRIPTION OF SUPPLY CHAIN MANAGEMENT

A. DEFINITION SCM
Supply Chain Management is the action of active management in supply
chain activities in order to maximize customer value and achieve a
sustainable competitive advantage. It represents a conscious effort by the
supply chain firms to develop and run supply chains in the most effective &
efficient ways possible. Supply chain activities cover everything from
product development, sourcing, production, and logistics, as well as the
information systems needed to coordinate these activities.

B. JOB DESCRIPTION IN SCM ACTIVITIES

The supply chain manager coordinates the logistics of all aspects of the
supply chain which consists of five parts: 1) the plan or strategy, 2) the
source (of raw materials or services), 3) manufacturing (focused on
productivity and efficiency), 4) delivery and logistics, and 5) the return
system (for defective or unwanted products). The supply chain manager
tries to minimize shortages and keep costs down. The job is not only about
logistics and purchasing inventory.
Supply chain managers work in a variety of industries including
manufacturing, aerospace, defense, and energy. They work for both large
and small companies. A classic example of a supply chain manager's
function might be finding the best price and quality for components in a
consumer product like an iPhone.
 CHAPTER 2
SUPPLY CHAIN PRINCIPLES

If supply-chain management has become top management's new "religion," then it

needs a doctrine. Andersen Consulting has stepped forward to provide the needed
guidance, espousing what it calls the "Seven Principles" of supply-chain
management. When consistently and comprehensively followed, the consulting
firm says, these seven principles bring a host of competitive advantages.

The seven principles as articulated by Andersen Consulting are as follows:

1. Segment customers based on service needs.
Companies traditionally have grouped customers by industry, product, or trade
channel and then provided the same level of service to everyone within a segment.
Effective supply-chain management, by contrast, groups customers by distinct
service needs--regardless of industry--and then tailors services to those particular
segments.

2. Customise the Supply Chain Management network.

In designing their Supply Chain Management network, companies need to focus
intensely on the service requirements and profitability of the customer segments
identified. The conventional approach of creating a "monolithic" Supply Chain
Management network runs counter to successful supply-chain management.

3. Listen to signals of market demand and plan accordingly.

Sales and operations planning must span the entire chain to detect early warning
signals of changing demand in ordering patterns, customer promotions, and so
forth. This demand-intensive approach leads to more consistent forecasts and
optimal resource allocation.

4. Differentiate product closer to the customer.

Companies today no longer can afford to stockpile inventory to compensate for
possible forecasting errors. Instead, they need to postpone product differentiation
in the manufacturing process closer to actual consumer demand.

5. Strategically manage the sources of supply.

By working closely with their key suppliers to reduce the overall costs of owning
materials and services, supply-chain management leaders enhance margins both
for themselves and their suppliers. Beating multiple suppliers over the head for the
lowest price is out, Andersen advises. "Gain sharing" is in.

6. Develop a supply-chain-wide technology strategy.

As one of the cornerstones of successful supply-chain management, information
technology must support multiple levels of decision making. It also should afford
a clear view of the flow of products, services, and information.

7. Adopt channel-spanning performance measures.

Excellent supply-chain measurement systems do more than just monitor internal
functions. They adopt measures that apply to every link in the supply chain.
Importantly, these measurement systems embrace both service and financial
metrics, such as each account's true profitability.

The principles are not easy to implement, the Andersen consultants say, because
they run counter to ingrained functionally oriented thinking about how companies
organise, operate, and serve customers. The organisations that do persevere and
build a successful supply chain have proved convincingly that you can please
customers and enjoy growth by doing so.
 CHAPTER 3
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

Before knowing importance of Supply Chain Management, there is need to

understand what actually SCM is? Supply Chain Management is the systematic
and the strategic coordination management for supplying goods and products
required by the end customer.
Supply chain management activities cover almost everything such as from
products to its development, sourcing, logistics and even information system also.
The main objective of SCM is creating net value, building a competitive
infrastructure, synchronize the goods supply, measures the performance globally
and leveraging worldwide logistic etc.
SCM plays a vital role in organization activities and an essential element to
operational efficiency which can be applied to customer satisfaction and
companys success. You can say that it is just like the backbone of an organization
which manages the critical issues of the business organization such as rapid
growth of multinational corporations, global expansion and environmental
concerns which indirectly or dramatically affects the corporate strategy.

Other benefits and importance of supply chain management are:

1. Reduces inventory costs
2. Provides better medium for information sharing between partners
3. Improves customer satisfaction as well as service
4. Maintains better trust between partners
5. Provides efficient manufacturing strategy
6. Improve process integration
7. Improves bottom line
8. Increase cash flow
9. Improves quality and gives higher profit margin
 CHAPTER 4
EXAMPLE OF SCM APPLICATION

Applying SCM : To Reduce Cycle Time and Eliminates Bad Habits

One of the chief causes of excessive order-to-delivery cycle times is the
existence of long-standing "bad habits" that result when companies fail to
revise internal processes to reflect market changes. The existence of separate,
independent departments tends to perpetuate these inefficient practices. Taking
the supply-chain management view, on the other hand, helps companies
identify the cumulative effects of those individual procedures. Eliminating such
bottlenecks improves product availability and speeds delivery to customers--
both of which can increase sales and profits.

The case :
Consultant R. Michael Donovan illustrates the point with the tale of a client
that manufactures a made-to-order machine part. Average order-to-delivery
time varied between six and nine weeks. As a result, the manufacturer was
losing business to "replicators" that could produce low-quality "knockoff"
versions in just three weeks. Donovan and his colleagues analyzed the
manufacturer's entire supply chain, from order entry and raw-materials supply
all the way to final delivery.

They found problems at every step of the way

Handwritten orders were being rekeyed into the materials-planning
system on weekends, which meant that some orders were sitting around
unprocessed for an entire week. On Monday mornings, production control
would be overwhelmed with a week's worth of orders. It often took them
several days to plow through the backlog and issue manufacturing orders.
Once those orders had been cut, the engineering department required one
week to produce technical drawings. They needed several more days to match
up drawings with orders and other documentation. Those information packets
then would go to the manufacturing line, where the scheduling system allowed
three weeks' time for production. "Orders could be sitting there for almost three
weeks before going into production, even though the actual time required to
produce an item ranged from a few hours to one full day," Donovan recalls.

The solution
Supply Chain experts were able to slash order-processing time, including the
generation of engineering drawings, from about two and a half weeks to one
day. They made some alterations to the manufacturing process to speed up
production. While they were cutting waste out of physical processes, the
consultants also were finding ways to speed up the flow of information and to
improve the accuracy of production orders. Today, materials flow is closely
correlated with information flow, and leadtimes have been cut from an average
of six to nine weeks down to fewer than three weeks.

The payoff
The payoff has been enormous. Instead of steadily losing market share to the
replicators, the manufacturer has doubled sales volumes. It has reaped an added
benefit as well: Because quality remains very high, the manufacturer has been
able to charge more for its products, generating even greater profits.
Donovan proudly notes that this radical change was achieved with
technologies the manufacturer already had. "We didn't change the technology,
we just changed how it was applied," he says. "The magic is not in the
software. Information technology should not be the driver of re-engineering the
order-to-delivery process," he concludes. "It should enable you to achieve your
objectives."
These are some typical examples of SCM application to Greek enterprises:
ASTRA HELLAS S.A - using the SEN Enterprise resource planning
software
PAPOUTSANIS S.A. - using the BAAN & SFI Enterprise resource
planning software
ELVO - using the BAAN Enterprise resource planning software
ATTIKO METRO - using the BAANEnterprise resource planning
software
ISOBAU HELLAS S.A. (aluminium panel production) - using the SEN
Enterprise resource planning software

Supply Chain Management in Coca-Cola Industry

Picture above explain how managers manage Coca Colas supply chain
management. Managers of coca cola manufacturer manage its supply
management right from the second tier supplier. As the second tier supplier
provide vanilla and cherry flavoring to the syrup manufacturer. While glass
and aluminum factory, as the other second tier supplier, supply the
packaging materials to the packaging manufacturer.
After managers manage the flow of materials in second tier supplier, then
they manage the first tier supplier to supply water and carbon dioxide
directly to coca colas manufacturer along with other ingredients such as
syrup from the syrup manufacturer. Packaging Facility then sent the coca
colas empty cans and bottles to the manufacturer as well in order to pack
coca cola readily.
The supply chain managers also manage the amount of products to be
stored in the warehouse and how many coca cola should be distribute to
the retailer and the vending machine.

Therefore, supply chain manager coordinates all the logistics aspects of the
supply chain which consists of five parts: the plan or strategy, the source
(of raw materials or services), manufacturing (focused on productivity and
efficiency), delivery and logistics, and the return system (for defective or
unwanted products). The supply chain manager also tries to minimize
shortages and keeps all of the costs down which not only about logistics
and purchasing inventory.